Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Nearly a quarter of Scottish engineering firms risk staff losses due to Brexit: survey

Published 09/13/2017, 12:19 PM
Updated 09/13/2017, 12:20 PM
© Reuters. A cab driver waving a Union flag smiles at a demonstrator holding a European Union flag outside the Houses of Parliament in London

EDINBURGH (Reuters) - Almost one quarter of Scottish engineering and manufacturing firms have lost or are at risk of losing staff because of Britain's decision to leave the European Union, a survey published on Wednesday found.

The poll by accountants Henderson Loggie also found almost three quarters of firms surveyed had problems recruiting staff with the right skills.

Immigration is one of the thorniest issues in Britain´s Brexit negotiations, as many of those who voted to leave were concerned about high levels of EU workers arriving. A leaked document last week showing Britain was considering measures to restrict immigration for all but the highest-skilled EU workers, raised hackles at British companies.

Immigration is particularly sensitive in Scotland where population decline, a source of concern for decades, had been reversed in recent years by young migrants arriving from the EU and settling.

The poll of 50 firms in Scotland and 460 across the UK carried out in June and July found 84 percent of firms expected production costs to continue to rise and 22 percent cited Brexit concerns as a barrier to growth.

"The sector continues to have difficulty recruiting staff with the relevant skills, the pressure on which is likely to increase as some businesses are at risk of losing staff due to Brexit," said Gavin Black, partner at Henderson Loggie´s Manufacturing Group.

The survey found that 23 percent of businesses have lost or are at risk of losing staff as a result of Brexit, due to uncertainty over post-Brexit EU workers' rights and a drop in the value of the pound. That compared with 20 percent in the UK as a whole.

© Reuters. A cab driver waving a Union flag smiles at a demonstrator holding a European Union flag outside the Houses of Parliament in London

A British trade survey conducted between March and May found nearly half of businesses operating in the food supply chain said EU workers were thinking about leaving because of uncertainty around Brexit. nL4N1L94S1

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.